What Every Homeowner Should Know About Their Equity

What Every Homeowner Should Know About Their Equity

Curious about selling your home? Understanding how much equity you have is the first step to unlocking what you can afford when you move. With home prices rising significantly over the past few years, most people have more equity than they may realize.

Here’s a deeper look at what you need to know if you’re ready to cash in on your investment and put your equity toward your next home.

Home Equity: What Is It and How Much Do You Have?

Home equity is the difference between your home's market value and the remaining balance on your mortgage. For example, if your house is worth $400,000 and you owe $200,000 on your mortgage, your equity would be $200,000.

Recent data from the Census and ATTOM shows that Americans currently have significant equity. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below):

Today, more homeowners are seeing a larger return on their homeownership investments when they sell. If you have significant equity, it can be a powerful tool to fuel your next move.

What You Should Do Next

If you’re thinking about selling your house, it’s crucial to understand how much equity you have and what that means for your home sale and potential earnings. The best way to get a clear picture is to work with your real estate agent, along with a tax professional or financial advisor. A team of experts can help you understand your specific situation and guide you forward.

Bottom Line

Home prices have risen, which likely means your equity has too. Let’s connect so you can find out how much equity you have in your home and move forward confidently when you sell.